Energy

Greater Mekong Subregion countries are in varying stages of economic development but share common goals concerning energy security and environmental protection. Progress have been made in promoting renewable energy, clean fuels, and energy efficiency, but new energy solutions remain crucial to the subregion’s advancement.

The GMS Economic Cooperation Program Strategic Framework 2030 (GMS-2030) emphasizes cross-border power trade, establishment of regional grid codes, development of regional markets, and expanding clean energy investments with a greater role for the private sector. GMS-2030, endorsed and adopted at the 7th GMS Summit of Leaders in September 2021, aims to provide a new setting for the development of this subregion for the next decade.

The Regional Power Trade Coordination Committee (RPTCC) managed regional power trade in the subregion from 2004–2022. In July 2022, at the 29th RPTCC meeting, the committee formally transitioned to the GMS Energy Transition Taskforce (ETTF).

The ETTF pursues activities across the following workstreams:

  1. 1. Sustaining GMS cooperation on regional power trade
  2. 2. Technology capacity building programs on renewable energy, energy storage in improving grid stability; leveraging electric vehicles
  3. 3.Accelerating energy efficiency programs to promote more competitive industries through energy cost savings
  4. 4.Training on green financing and green bonds to support GMS countries in raising finance for their transition to cleaner energy

New Energy Solutions Needed for the GMS

Demand for energy is surging, and by some estimates demand for energy in the lower Mekong countries – Cambodia, the Lao People's Democratic Republic, and Viet Nam – is expected to nearly triple from 317 terawatt-hours in 2012 to 815 terawatt-hours in 2025.

Rapidly improving economies have allowed GMS countries to respond to this demand with extensive power generation projects. Gas-fired plants are expected to nearly double to about 54 plants with 24,000 megawatts during the same period. Renewable sources such as solar, wind, and biomass are not yet prevalent in the subregion, but the number of projects is increasing rapidly.

GMS countries are addressing the complexities of meeting this surging energy demand by taking a regional approach that allows for the most cost-efficient projects using a diverse range of energy sources. They are also sharing experiences and lessons learned.

Countries are enhancing the regional coordination of power trading, including the exchange of information on energy sector plans and projects. The ultimate goal is to provide an adequate supply of energy throughout the subregion at an affordable price, and to bring the economic benefits of a reliable energy supply to people in rural areas, while at the same time encouraging investment.
GMS countries are addressing the complexities of meeting this surging energy demand by taking a regional approach that allows for the most cost-efficient projects using a diverse range of energy sources.They are also sharing experiences and lessons learned.

Works are underway for greater integration of renewable energies in countries’ energy development. In July 2021, an ADB knowledge and support TA: Accelerating the Clean Energy Transition in Southeast Asia (SEA) was approved to support countries in SEA to accelerate transition to cleaner forms of energy.

Facilitating Power Trade in the Greater Mekong Subregion, published in 2022, reflects a 5-year endeavor among government officials and representatives from utilities with the support of international experts to reach an agreement on a range of complex technical and institutional issues in establishing a common Regional Grid Code (RGC) for the GMS. The report addresses the technical and operational issues of interconnections along with the steps that are required to harmonize national grid codes within an overarching regional structure of the RGC.

The GMS Road Map for Expanded Cooperation in the Energy Sector is helping guide efforts in planning and implementing projects for power generation, cross-border interconnections, and for improving country transmission systems. National projects are being developed with an eye toward the development of regional power trade arrangements that will increase efficiency and lower energy costs for consumers.

The Update of the GMS Regional Master Plan for the period 2009-2025 (i) simulated the regional power system with existing and potential planned power interconnections, (ii) ran simulations of the model for a variety of regional power system scenarios, (iii) identified the potentially beneficial regional interconnection projects based on the Master Plan, and (iv) compiled a list of priority projects according to their merits.

Related

• Facilitating Power Trade in the Greater Mekong Subregion

• GMS Road Map for Expanded Energy Cooperation

• Update of the GMS Regional Master Plan

• Study: Building a Sustainable Energy Future - The Greater Mekong Subregion

• Regional Power Trade Coordination Committee (RPTCC)

Contact Persons

Focal Persons at the Asian Development Bank

  • Hyunjung Lee (lead) 
    Energy Sector Office
    Sectors Group

  • Atsumasa Sakai 
    Energy Sector Office
    Sectors Group

Other Concerned Staff & Consultants

  • Joao Aleluia 
    Energy Sector Office
    Sectors Group

  • Architrandi Priambodo 
    Energy Sector Office
    Sectors Group

  • Minnie Zarah Ramas 
    Energy Sector Office
    Sectors Group

  • Jeffrey Almera 
    Energy Sector Office
    Sectors Group

  • Pinsuda Alexander 
    Regional Cooperation and Integration Unit
    Southeast Asia Department 

  • Rafaelita Jamon 
    Regional Cooperation and Integration Unit
    Southeast Asia Department/GMS Secretariat 

Send inquiries to GMS Secretariat. 

Power lines from the 1070 MW Nam Theun 2 hydropower plant in Lao PDR. 95% of the power produced by the plant is exported to Thailand, and the rest are consumed locally. Photo by Ariel Javellana/ADB.

Lao PDR Ramps Up Electricity Exports to Viet Nam

The Government of the Lao People’s Democratic Republic is increasing its electricity exports generated from its hydropower projects to its neighbors in the Greater Mekong Subregion, including Viet Nam. Lao PDR and Viet Nam have signed MoUs targeting to export 8,148 MW from Lao PDR to Viet Nam by 2030. Lao PDR also signed contracts with Viet Nam Electricity (EVN) to implement 25 projects with a combined capacity of 2,180 megawatts.  

Viet Nam Harvests the Benefits of a Wind Farm and Strong Private Sector Partnership

Electricity demand in Viet Nam is expected to grow at 8% annually through to 2030. Meeting this demand will require increasing power generation capacity and developing more renewable sources of energy. Building the infrastructure to generate and transmit the extra energy capacity will require significant amounts of financing and strong collaboration.  

Viet Nam Electricity Signs Power Purchase Agreement with Lao PDR Wind Farm

Viet Nam Electricity and Impact Energy Asia Development (IEAD) Limited signed the 25-year Power Purchase Agreement (PPA) for the Monsoon Wind Project on 12 July 2021. The 600-megawatt wind energy project will be the largest wind farm in Southeast Asia and the first cross-border wind energy project. It will be located in Sekong and Attapeu provinces in Southern Lao PDR, and export green energy to Central Vietnam through a 500 kilovolt transmission line. Construction is expected to begin in 2022, with commercial operation aimed for 2025.  

The project will generate an average of 422 gigawatt-hours of electricity and avoid an average of 162,430 tons of carbon dioxide emissions annually. Phot oby Power Construction Joint Stock Company No. 1

ADB Signs Green Loan to Develop 144 MW Wind Farms in Viet Nam

The Asian Development Bank (ADB) signed a $116 million green loan with Lien Lap Wind Power Joint Stock Company (Lien Lap), Phong Huy Wind Power Joint Stock Company (Phong Huy), and Phong Nguyen Wind Power Joint Stock Company (Phong Nguyen) to build and operate three 48-megawatt (MW) wind farms, totaling 144 MW, in Quang Tri Province, Viet Nam. The project will increase Viet Nam’s wind power capacity by 30%, helping the country meet the rapidly growing demand for energy. 

At the grounbreaking ceremony of the V1-2 wind power plant. Photo by VNA via Viet Nam Plus

Construction of Viet Nam-Thailand Wind Power Plant Begins

The joint venture V1-2 wind power plant between the Truong Thanh Viet Nam Group and the Sermsang Power Corporation Public Company Limited of Thailand launched construction in Tra Vinh, Viet Nam, on 14 August. The 48 MW peak facility consists of 12 wind turbines to be built on 1,220 hectares in the Truong Long Hoa commune, Duyen Hai town. The project is estimated to cost around $96 million (2.23 trillion VND), and is expected to generate around 163 million kWh of electricity each year. 

The Nam Theun 2 is a 1070 MW hydropower plant on Nam Theun river in Lao PDR. 95% of the power produced by the plant is exported to Thailand and the rest are consumed locally. Revenues from the power plant are used by the government of Lao PDR to help reduce poverty in the country. Photo: ADB

Lao PDR Highlights Dam Safety as Electricity Export Grows

As the Lao People’s Democratic Republic (PDR) increases its electricity exports, the country is prioritizing safety improvement of its dams. A committee comprising local and foreign experts will conduct dam safety inspections, according to news by the Laotian Times. The Government is also implementing new safety measures and standards.

Director of Infrastructure Finance Division of ADB's Private Sector Operations Department Mr. Jackie B. Surtani (third from left) and GED Executive Director Ms. Yupapin Wangviwat (third from right), along with officials from the Japan International Cooperation Agency, Bangkok Bank PCL, Siam Commercial Bank PCL, and Standard Chartered Bank (Thai) PCL, during the signing ceremony on January 22. Photo by ADB.

ADB Boosts Financing for Solar Power Plant in Viet Nam

A $37.8 million loan deal between the Asian Development Bank (ADB) and TTC Energy Development Investment Joint Stock Company (TTC Energy) will provide TTC Energy with long-term financing to develop and operate a 50-megawatt (MW) photovoltaic solar power plant. The solar power plant and its associated facilities will be built in Tay Ninh Province in Viet Nam, and serve the electricity demand of residents and businesses of Ho Chi Minh City and its surrounding areas. This will help reduce 29,760 tons of carbon dioxide emissions by 2020. 

The technical assistance covers the preparation of energy projects in Southeast Asia, such as developing priority power interconnections for cross-border trade of electricity in the Greater Mekong Subregion. Photo: ADB.

ADB Supports Energy Investment Planning in Southeast Asia

The Asian Development Bank has approved technical assistance for energy projects in Southeast Asia, including the Greater Mekong Subregion Cross-Border Power Trade and Distribution Project.